Small and medium size businesses span a wide range of business types, and involve a wide range of business risks and risk characteristics, making it difficult to generate and analyze information to produce rating and pricing policies that can be reliably and consistently applied to different businesses in different geographical locations.
The rating and pricing of business insurance policies is complex, and is made particularly complex by the wide range of different types and classes of businesses. Rating and pricing is made even more complex by the different geographical, demographic and even environmental conditions that are relevant to the risk of loss for different businesses. For example, certain areas of the U.S. present higher loss risks due to catastrophic conditions such as hurricanes or floods. As another example, certain areas present higher loss risks due to theft. Current rating and pricing systems do not adequately take such territorial variations into consideration when pricing and evaluating business insurance policies.
It would be desirable to provide systems and methods for rating and pricing insurance policies which achieve better rate and pricing specificity and flexibility. It would further be desirable to provide established base rates by coverage, amount of insurance relativities, territories or geographical location. It would be further desirable to provide systems and methods that allow existing agent systems and processes to quickly and efficiently price and quote business owner insurance policies using the improved rating and pricing systems.